BSE introduces market making to improve liquidity

Marketing making to improve liquidity on BSE
Marketing making to improve liquidity on BSE

The Botswana Stock Exchange (BSE) has introduced the concept of market making, with the aim to improve liquidity on the domestic bourse.

Market making is described as the act of simultaneously submitting bid and offer prices into the Automated Trading System (ATS) with the intention of infusing liquidity in securities that are not frequently traded on the stock exchange.

BSE deputy chief executive officer, Thapelo Tsheole said the implementation of market making on the local exchange should entail the appointment of institutions that would have applied to be registered as market makers.

Editor's Comment
Botswana at a critical juncture

While the political shift brings hope for change, it also places immense pressure on the new administration to deliver on its election promises in the face of serious economic challenges.On another level, newly appointed Finance Minister Ndaba Gaolathe’s grim assessment of the country’s finances adds urgency to the moment. The budget deficit, expected to be P8.7 billion, is now anticipated to be even higher due to underperforming diamond...

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